Walter Energy to pay 50% of interest in kind on 11%/12% notes due 2020

By Susanna Moon

Chicago, March 20 – Walter Energy, Inc. has elected to pay interest in cash and in kind on its 11%/12% senior secured second-lien pay-in-kind toggle notes due 2020, according to an 8-K filing with the Securities and Exchange Commission.

For the period beginning April 1, the company elected to pay 50% in cash interest, about $9.9 million, and the rest in kind, about $10.8 million.

For any interest payment before Oct. 1, 2019, the company may pay interest entirely in cash at a rate of 11% or, if paid in kind, 50%/50% or 75%/25% combination of cash interest and an increase in the principal amount of the notes or issue of additional notes at a rate of 12%.

Walter is a Birmingham, Ala.-based pure-play metallurgical coal producer.

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